Cupola Fan Corporation issued $10\%,$ $$420,000,10-$year bonds for $$403,000$ on June $30,2021.$ Debt issue costs were $$1,700.$ Interest is paid semiannually on December $31$ and June $30.$ One year from the issue date $($July $1,2022),$ the corporation exercised its call privilege and retired the bonds for $$410,000.$ The corporation uses the straight$-$line method both to determine interest expense and to amortize debt issue costs. Required: $1.$ to $4.$ Prepare the journal entry to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on December $31,2021$ & June $30,2022,$ and the call of the bonds. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Answer rating: 100% (QA)

1 Issuance of Bonds on June 30 2021 Cupola Fan Corporation issued 10 420000 10year bonds on June 30 2021 at a discount The discount is calculated as t... View the full answer